Question

This problem is based on the transactions for the FastForward Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Dec. 1 on December 1, Chas Taylor forms a consulting business, named Fast Forward. Fast Forward receives $30,000 cash from Chas Taylor in exchange for common stock. Dec. 2 Fast Forward pays $2,500 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec. 3 Fast Forward pays $26,000 cash for equipment. Dec. 4 Fast Forward purchases $7,100 of supplies on credit from a supplier, CalTech Supply. Dec. 5 Fast Forward provides consulting services and immediately collects $4,200 cash. Dec. 6 Fast Forward pays $1,000 cash for December rent. Dec. 7 Fast Forward pays $700 cash for employee salary. Dec. 8 Fast Forward provides consulting services of $1,600 and rents its test facilities for $300. The customer is billed $1,900 for these services. Dec. 9 Fast Forward receives $1,900 cash from the client billed on December 8. Dec. 10 FastForward pays CalTech Supply $900 cash as partial payment for its December 4 $7,100 purchase of supplies. Dec. 11 FastForward pays $200 cash for dividends. Dec. 12 Fast Forward receives $3,000 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. Dec. 13 Fast Forward pays $2,400 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. Dec. 14 Fast Forward pays $120 cash for supplies. Dec. 15 FastForward pays $305 cash for December utilities expense. Dec. 16 FastForward pays $700 cash in employee salary for work performed in the latter part of December.

Answer 1

Page No Date Tournal Entues Debet $30000 Cash Dr Common Stock Credit $3000__ Decal 2 Supplies Expense Do $2500 $2500 Dec 3 Equpment or $26000 $ 26000 Dec 4 $7100 $7100 Supplies Cexpense or "Accounts Payable Cash Dr Seruice Revenue Rent Dr $4200 $4200 $ 1000 Cash $1000 Salary Dr $700 cach $mo Deco $1900 Accounts Recievable Dr Service Revenue Rent Income $1600 $ 300 $1900 Cash Dr Accounts Recievable $1900

Decio $900 Deall $200 Dee12 $3000 Accounts Payable Dr $900 Cash Dividend payable Ar $200 Cash Cash so Uneaned Revenue is Prepaud Insurance or $2200 Insurance Dr $200 - Cash supplies Dr $120 $3000 Ded3 $2400 I Decly Cash $120 Utilitees expenses Cash $305 $305 Decib المهملة $ 700 $700